The percentages of allotments to the various banks gave considerable dissatisfaction as some got a full allotment and others as little as 30 per cent. It was this disproportionate allotment that first really disturbed the market.
During the week following this allotment, the market remained comparatively stable, although sellers were scarce. Even the banks with a full allotment were not good sellers, and while the selling rate to merchants remained at 1/2 sterling and U.S.$27% the open market rate dropped to 1/1%-and U.S.$25%. On March 24, the disparity between the allotments to the various banks was still more pronounced, ranging from 82% per cent. to 10 per cent, This again caused nervousness and lack of confidence in the currency, as the reluctance of banks to sell naturally caused a keener desire to buy, so that there were still wider differences between the official rates and the open market rates, the latter declining to 1/1% sterling and On Monday, in an effort to bring the two rates together, an anrouncement was made that the semi-official rate to merchants would be 1/- sterling and U.S.$24%. This caused a further decline in the open market, and at one time rates declined to 10% sterling and U.S$21%. There has since been a moderate recovery, but uneasiness still prevails in the market, The point which is now looming large in the minds of the public is whether the Chinese National Government will give adequate support to the currency, and if so to what extent and under what conditions, It was considered that the allotments made were quite adequate, and sufficient to cover the differences between the import and export requirements as shown by the customs returns, yet in actual fact they were not anything like enough, the "North-China Daily News" informants stated:
It was assumed that in endeavouring to avoid any embarrassment to the Chinese Government, foreign banks generally had accumulated an oversold position, which under normal conditions would have been covered without difficulty. It was a natural tendency of merchants to run to cover, according to these circles, thus increasing the abnormal requirements,
Text read from the printed page and cleaned; old type leaves the occasional error.